Perhaps you’ve already heard about Bitcoin or other cryptocurrencies. What do you know about it? Have you considered investing in it or using it for your financial transactions? Is it safe and secure?
There is only one constant thing in this world, they say. That is change. No matter what industry it is, there will always be changes. The biggest contributor can be attributed mostly to technology. These inevitable breakthroughs have been changing the way people live over the years.
Let’s talk about financial advancements, on the other hand. Who would think that cashless transactions could be possible before? Yet now, we are fully embracing it. From buying with the use of cards or other digital payment methods to accepting money online, it has been very convenient for us to do so these days. We’d like to keep our day-to-day living easy and efficient, that’s why.
What Is Cryptocurrency?
Cryptocurrency is a digital asset which works as a medium of exchange. To put it simply, it is under the category of alternative or virtual currencies.
Now, let’s discuss one of the top trending topics based on the report released by the giant search engine, Google. That’s Bitcoin, a digital currency, that has awakened the interest of many. It has also been the trending content of famous print and online influencers like Time, Forbes, the New York Times, etc. Indeed, cryptocurrencies have become a global phenomenon today.
As a matter of fact, financial experts, companies, banks, and the government are aware of the importance of cryptocurrencies. They’re conducting research about it and even sending press releases to spread awareness. After all, the concept of digital cash system sounds promising. That’s why people would like to know more about it. To say, the trend will always capture attention.
Looking back, Satoshi Nakamoto was the first person to successfully pioneer the invention of cryptocurrency in 2008. It was never intended to be known like that though. However, his concept of “A Peer-to-Peer Electronic Cash System” served as the missing piece of the puzzle. Before him, many tried to realize digital cash, but they failed.
Since its invention, a lot of people has seen its potential in the market. It has triggered the interest of many investors, entrepreneurs and stock traders, in particular. They see it as a big opportunity for investment because of the value of cryptocurrencies.
Currently, there are over 800 cryptocurrencies in the market. These are not controlled by the central authorities like the government or a bank. Is it safe then? Well, “miners” created these digital currencies. They use computers and specialized equipment to process the transactions and secure the network. A blockchain plays a big role in its security. It records transactions orderly in a public digital ledger. It keeps bitcoin wallets safe and secure from fraud.
5 Facts About Cryptocurrency
1. Cryptocurrency acts as a payment method.
Some businesses have incorporated bitcoins as a digital means of payment for their products and services. These include Expedia, Overstock.com, Dish and a lot more. Because of the popularity of bitcoins, they would like to take advantage of it and benefit from it in the long run.
The reason why bitcoin has value is that people accept and trade it. They recognize it as a currency. Unlike gold and fiat currencies like US dollar, bitcoin is neither a physical commodity nor accepted as a legal tender. It is an asset which can be used as a fiat world currency to buy good and services. In fact, bitcoin is now listed on exchanges along with other leading currencies in the world.
2. The US government values bitcoins.
Do you know that the USA shares the largest holding of bitcoin? As a matter of fact, it owns the largest Bitcoin wallet on the internet. If the most influential country in the world has given importance to bitcoins, it means every nation should acknowledge it.
Today, FBI controls over 144,000 bitcoins after the Silk Road bitcoins seizure due to illegal transactions. It is now worth an estimated $100 million considering the current exchange rates in the market.
3. You can invest on cryptocurrency.
Like other currencies we know, Bitcoin has also its value. The great thing about it is that it increases over time massively. That’s why investors have seen it as an opportunity to grow their money. Today, 10,000 bitcoins are worth $20 million and it doesn’t stop there. That’s the most interesting thing about it. Give it a few more years and you’ll surely be a millionaire someday. Invest wisely.
4. Business giants accept cryptocurrencies.
Over 100, 000 businesses, like Microsoft and Dell, have accepted bitcoin. It is so interesting to think that they trust this digital currency. It means it is safe and secure.
In addition, the bitcoin exchange is way faster and easier compared to others as it does not rely on a bank to run the transactions. Usually, it would take a few business days to process payments using traditional methods. Thankfully, bitcoin has the technology called blockchain which solely ensures a more efficient transaction without involving financial institutions.
5. The court has ruled bitcoin as money.
Interestingly, a federal judge in the US has qualified bitcoin as money. There was a criminal case over hacking between two companies involving an alleged unlicensed bitcoin exchange.
It was argued that bitcoin did not qualify as “funds”. However, the said judge insisted that bitcoins can be accepted as payment for goods and services. It can also be bought directly from an exchange with a bank account, he added. Indeed, it is a considered a medium of exchange and a payment method.
Today, there are hundreds of cryptocurrencies which vary from one another in terms of cryptographic algorithms and popularity to people. These include Bitcoin, Litecoin, and Ethereum who lead the market respectively. As investors continuously venture cryptocurrencies, it only means further growth for the cryptomarket.
Furthermore, Bitcoin is the digital gold of today as they say. Its market value will just continue to increase for years to come as long as it appeals to people and businesses. So far, the cryptomarket is growing. While governments across the world don’t fully embrace it yet, convenience and choice will always be more powerful to people in this era.
Now, the question is, do you want to be a part of the cryptocurrency trend?
Laurent Dionisio, CPA, RFP
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